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TURNAROUND OF MERCEDES – BENZ INDIA LTD.
INTRODUCTION
Karl Benz founder “ Benz & Co”. 1st October 1883. 1900,Benz & Co become world biggest automobile manufacturer. First Mercedes was delivered on 22 December 1900. On 28th June 1926 it get merged and to form Daimler- Benz AG.
IMPORTANT SAYINGS OF TURNAROUND
Don’t Talk
Don’t Organize
Don’t Think
Just Do It…….
BECOME A PLAYSTATION
Stop all internal discussions and conflicts….
It is time to “roll-out” smooth and well rounded activities
Your actions should be clear, well defined like a square
And each one of us should reach the summit of his art
TURNAROUND MANAGEMENT
The present business scenario is one wherein constant change is the name of the game.
For any firm to survive in any industry, there has to be constant monitoring and improvement of its systems and operations
Process of bringing about a revival in the firm’s fortunes is what is termed as “Turnaround Management”.
3 PHASE IN MB’z TURNAROUNDMANAGMENT
Phase I: Watching out for the danger signal
Phase II: Choosing appropriate Strategy
Phase III: Implementation of the change process
PHASE I : WATCHING OUT FOR THE DANGER SIGNAL
• Decreasing constant sales• Decreasing profitability • Lack of planning• Inflexible CEO• A management team unwilling to
learn from competitors.
PHASE II : CHOOSING APPROPRIATE STRATERY
1. Strategic Turnaround A new way to compete in the existing business (Enter
into a joint venture with Telco 1994). A new way to compete in the existing business ( by
launching Mercedes Benz E class)
Under this the first choice Increases market share Making product market relationship
2. Operating Turnarounds
Asset reduction strategies : below BEP they should reduce their assets so the fixed cost will reduce.
Revenue increasing strategies : Not extremely below BEP they should apply new strategy so can generate revenue.
Combination strategies : above BEP they should use cost reduction strategy so firm profit can rise, by unnecessary cost cutting down
PHASE III:IMPLEMENTATION OF THE CHANGE PROCESS
Implementation plays an important role in any turnaround management.
Identification of an appropriate strategy by itself will not guarantee success.
The success or otherwise of a Turnaround strategy depends on the commitment shown by the top management as also the operating management.
Likewise new CEO Mr. Juergen Ziegler of Mercedes – Benz India ltd has implemented the project with new strategies with help of his management. And achieved success.
TO Achieve a Turnaround, You will Generally Need To Have The
Following Seven Things Present …
• A Viable Business • Time • Cash• Vision • Management • Stakeholder Support • Confidence In The Process
Conclusion
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